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Earnings Results: Pinterest reports jumps in sales and earnings, but monthly active users dive

Pinterest Inc. reported strong sales and earnings for its third quarter, but a shortfall in monthly active users.

The stock
PINS,
-2.33%

jumped 3.8% in extended trading Thursday after the social-media company reported fiscal third-quarter results that underwhelmed Wall Street. Pinterest reported net income of $94 million, or 14 cents a share, compared with a net loss of $94.2 million, or 16 cents a share, in the year-ago quarter. The company’s adjusted net income was $201 million, or 28 cents a share.

Revenue soared 43% to $632.9 million from $442.6 million a year ago. Analysts surveyed by FactSet had expected net income of 22 cents a share on revenue of $631 million.

Another key metric, average revenue per user (ARPU), was $1.41 with monthly active users (MAUs) at 444 million. Analysts had expected ARPU to improve sequentially to $1.38 from $1.32 in the second quarter, with MAUs improving to 460 million from 454 million in the second quarter.

“Revenue grew 43% year-over-year and I am proud of the team’s progress in launching a number of new products for both creators and brands, bringing more video content and shoppable features to Pinterest,” Chief Executive Ben Silbermann said in a statement announcing the results.

Pinterest said it expects fourth-quarter revenue to grow in the “high teens percentage range” year over year.

The company did not mention the impact of Apple Inc.’s recent changes in mobile privacy policy on advertising. Snap Inc.
SNAP,
-1.28%

and Facebook Inc.
FB,
+1.28%

earlier blamed n Apple’s
AAPL,
-0.35%

changes that make it harder for advertisers to target customers. Google parent Alphabet Inc.
GOOGL,
+1.14%

GOOG,
+1.29%

and Twitter Inc.
TWTR,
-1.56%

went largely unscathed.

Pinterest is “more exposed than Google to iOS challenges and has greater direct
response exposure than Twitter,” Evercore ISI analyst Mark Mahaney said in a Nov. 1 note to clients.

Pinterest’s stock has dropped 34% in 2021. The broader S&P 500 index
SPX,
+0.42%

 has gained 24.6% this year.

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